Day: October 11, 2017

Understanding Bankruptcy Laws

Getting a 2nd mortgage loan or home equity loan after a bankruptcy is workable. However, loan applicants should be aware of certain disadvantages to bad credit loans. A bankruptcy is destructive to credit scores. In reality, many financial experts discourage bankruptcies. Those who file Chapter 7 or Chapter 13 are subjected to higher finance rates on homes, cars, etc. Before applying for a 2nd mortgage, know what to expect and understand the basics of getting a reasonable rate. Expect Higher Finance Fees or Interest Rates After a bankruptcy, many people are hesitant to apply for credit. They expect higher rates, which will also increase monthly payments. However, obtaining new credit accounts is crucial.

Are You a Candidate for Bankruptcy?

Bankruptcy laws give debtors a way to resolve debt by dividing their assets among their various creditors and in some cases will allow debtors to be freed of outstanding debts that cannot be paid, even after the division of assets. For individuals who find themselves unable to pay their debts, bankruptcy can be a viable option. As a debtor, you are entitled to file for bankruptcy. There have been recent changes to bankruptcy laws that may affect your ability to discharge your debts without credit counseling, but individuals who have found themselves unable to pay their debts can still file bankruptcy and be freed of outstanding debts.

Chapter 7 bankruptcy is normally used by individuals wanting to rid themselves of all accumulated debt, and is the most frequently used method of filing bankruptcy. Businesses who wish to completely liquidate assets and close permanently can also file Chapter 7 bankruptcy. Under Chapter 7, individuals are allowed to keep certain property such as their home and perhaps their vehicle, but may still lose some property in the proceedings. During the course of the bankruptcy proceedings, the debtor’s assets are controlled by a trustee and will be divided among the various creditors as the trustee sees fit. After the bankruptcy has been discharged, control of any remaining property is placed back in the hands of the debtor and all outstanding debts will have been removed.

Chapter 13 bankruptcies are for individuals who wish to pay their debts but are unable to do so. Chapter 13 allows individuals to reorganize their debts and restructure payment arrangements so that debts may be repaid over time. Chapter 11 bankruptcies are used predominantly by businesses that wish to reorganize the repayment of outstanding debts and continue operating in a regular manner.

Filing bankruptcy can be a way out of debt for many people and businesses. You should consult with a debt relief organization and/or an attorney to find out if bankruptcy is an option in your particular situation.

Chapter Bankruptcy

If you are an affiliate looking for a niche market, here’s an important piece of information to make note of: In 2005 there were over 2 million personal bankruptcy filings in the United States. Many of these individuals will be looking to rebuild their credit and financial future. This spells opportunity for you as an affiliate. You see, here are just a few products and services that an individual with past bankruptcy will need in order to rebuild their credit and financial future: 1) Credit repair 2) Loans 3) Credit cards Let’s take a look at each one in more detail, and how you can help as an affiliate: 1) Credit
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If you have filed bankruptcy recently, you may wonder if you can get approved for a home loan. You may also wonder if buying a home after a recent bankruptcy is a good idea for you. While a bankruptcy can make getting approved for a mortgage loan more difficult, it is still possible to get approved for a mortgage loan. In fact, there are more and more bad credit loan programs coming out all the time. Subprime lenders are focusing more on helping individuals with poor credit acheive home ownership. This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with